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Greenply Industries At An Inflection Point: ICICI Securities  

Greenply Industries At An Inflection Point; Growth Momentum To Sustain In Near-To-Medium Term: ICICI Securities

A worker arranges sheets of veneer at a plywood manufacturing workshop in Muzaffarpur, Bihar. (Photographer: Prashanth Vishwanathan/Bloomberg)  
A worker arranges sheets of veneer at a plywood manufacturing workshop in Muzaffarpur, Bihar. (Photographer: Prashanth Vishwanathan/Bloomberg)  

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

After several quarters of muted and decline in volumes, Greenply Industries Ltd. has finally returned to growth (with a bang: high double-digit growth) - that is the insight from our conversations with multiple plywood dealers (pan-India).

With the (recent) sharp improvement in working capital management (leading to strong balance sheet strengthening) and sudden recovery in the secondary real estate market post-Covid-19, we expect growth momentum to sustain in the near-to-medium term.

With sharp recovery in growth, we estimate the plywood Ebitda margin to improve to 13.6% by FY23 (versus management guidance of 14.6%).

Click on the attachment to read the full report:

ICICI Securities Greenply Industries Company Update.pdf

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